Husband and Brown Ltd v Mitch Developments Ltd [2015] EWHC 2900 (TCC) (16 October 2015)

Husband and Brown Ltd v Mitch Developments Ltd [2015] EWHC 2900 (TCC) (16 October 2015)

The negotiations for the site from March to September 2012 constituted a single transaction; the Claimant is entitled to an incentive fee based on the reduction from the original agreed price to the final purchase price. The contract was not a 'construction contract' under the 1996 Act, so adjudication costs are not recoverable.

Citation
[2015] EWHC 2900 (TCC)
Parties
Claimant: Husband and Brown Limited; Defendant: Mitch Developments Limited
Jurisdiction
England and Wales
Judgment Date
16 October 2015
Procedural Posture
Commercial Contract Dispute / Final Judgment
Outcome
Claim succeeds in part; incentive fee awarded; claim for adjudication costs dismissed; Tomlin order granted to stay proceedings on settlement terms.
Legal Topics
Oral Agreements, Incentive Fees, Adjudication Costs, Interpretation of Contract Terms
Contract Law Construction Law Oral Agreements Incentive Fees Adjudication Costs Interpretation of Contract Terms

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Parties

Husband and Brown Limited

Claimant

Mitch Developments Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment

Legal Issues

  1. 1 Entitlement to incentive fee based on reduction in purchase price
  2. 2 Recoverability of adjudication costs
  3. 3 Interpretation of contract terms regarding incentive fee

Ratio Decidendi

The negotiations for the site from March to September 2012 constituted a single transaction; the Claimant is entitled to an incentive fee based on the reduction from the original agreed price to the final purchase price. The contract was not a 'construction contract' under the 1996 Act, so adjudication costs are not recoverable.

Court Disposition

Claim succeeds in part; incentive fee awarded; claim for adjudication costs dismissed; Tomlin order granted to stay proceedings on settlement terms.

Orders

  • Claimant entitled to incentive fee of 25% of savings from £500,007 to £325,000.
  • Claim for adjudication costs dismissed.